commerce essay

Industrial Analysis About Burger King Commerce Essay

Published: 23, March 2015

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In this assignment we are required to research about the new cafeteria on Burger King out to the market. This research will include the Legal, Ethical, Cultural and Industrial analysis about burger King and also the Porters Five Forces. It also includes some strategies about SWOT and PESTEL that are all being written in the report as a part of this assignment.

Also in this report it show the weakness of Burger as a business to others and other business take advantages this because Burger King is one of the main competitors in the fast food industry and also the market. The opportunity it has and can take on and the threats it has.

Also includes the introduction and history of Burger King and its position in market throughout till present. To conduct the research and to gather the relevant information, various sources have been referred.

INTRODUCTION

In this individual assignment we have been assigned to carry out a report on Burger Kings. And on this assignment we are required to carry out reports about Burger Kings on evaluating research as follows:

Legal

Ethical such

Cultural

Industry

SWOT

PESTEL

Burger King is planning to launch a cafeteria in competition with McCafe of McDonalds. For that Burger King must carry out the Market Research for the purpose of their marketing strategies to launch their new cafe. Burger King needs to evaluate legal, ethical, cultural, and industry issues which are relevant to Burger King towards conducting marketing research and launching of their cafe.

MAIN BODY

BACKGROUND

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The Burger King is also said/ called in another name which is BK in short. Burger King is one of the fast food restaurant and food that are consumed by the people of New Zealand in the 21st century.

"According to the Wikipedia page that it was founded in 1953 in Jacksonville, as the Insta-Burger King. Keith j. Kramer and his wife's uncle were the founders and owners of this company. Insta-meat was the equipment around which the first store was opened. After this they started making hamburgers." (Wikipedia, 17 July, 2012 last modified).

In launching a new café in competition against McDonald, Burger King will have to research or gather information about the introducing the product.

Bibliography

LEGAL ISSUES

Burger king as one of the fast and busy restaurants locally and international has to make sure that it has all its resources to succeed in what it can do best and that's to serve good quality food to customers and make profit. In this Burger King has to make sure that everything is in order to ensure health and safety of people all over in New Zealand who consumes the Burger King products, every country has its own system to ensure that health and safety standards are met and followed by food industry. In this issues Burger King has its own way like rules to make sure that everyone is safe and secure from the product that are been consumes by the people.

From below sentences and paragraphs are some criteria that Burger King is registered on:

Food Act Law 1981

Burger King as a fast food restaurant (business) that sells food to the people will fall under this act. This will concern that all product that has been sold by Burger King are safe and can be consume like:

Foods are not contaminated.

Make sure that food are consumable by consumers in New Zealand

The Food Regulations Act 2002

Under this act Burger King has the rights to sure that no one else are selling their products at any cost. This can either if it's like an articles that has been in the:

Storage

Cooking

The way it's been prepared.

HR Safety

The HR safety ac t commits on the jobs and workers safety under the act of Safety and Health Act of 1970 on which it looks for work safety and health protection for labours by looking at the safest and healthful working conditions throughout New Zealand as a nation. So Burger King will to follow this Act they want to continue running the business.

Fair Trading Act 1986

Under this act it can be said that it protects the consumers against or to avoid us from misleading or treated in a bad manner towards the business on selling goods and services to the consumers. It also applies to every business from the government so that consumers have some information about the product.

Consumers Guarantee Act

In this act it is all about the goods and services quality. It prevents consumers from buying poor or less quality on goods and services that do not reach its original standard (quality) so that consumers are not just wasting their money on bad quality of goods and services.

Labour Laws

Under this laws it will show that all workers are treated fairly, work on the right hours (not overworking and getting paid less) and also that labour do get help and support from the business.

Industry Act

This act gives and provides rules and regulations towards the employees and employers relations and also to prevent any dispute between the two parties.

Copyright Act 1994

On 1994 copyright act, it protects the workers and it automatically applies as soon as possible as the business is put in design on which is been decided like logos that has been print and stored. It is also said that it is not right to copy any piece of work without a licence

Trade Practice Act 1974

"The increasingly competitive nature of today's business environment has meant that business practices involving misleading and deceptive conduct, price fixing, boycotting and market sharing are not only associated with large corporations. In today's highly competitive business environment, more and more small businesses are engaging in business practice, both intentionally and unwittingly, that contravene the Trade Practices Act 1974" (Cwlth) (TPA).

ETHICAL ISSUES

Health

Burger as fast food restaurants will have to make sure that it provides good quality products to it every customer by providing a healthy food to its customers in any way good way. This will be one of the main aims of any business (fast food) in New Zealand. So if Burger Kings Is trying to launch a new McCafe they will have to make sure that there are going to provide a healthy product to its customers.

Social Responsibilities

A social responsibility is also an ethic thing to do by Burger Kings if it tends to launch a new MaCafe. This can make work easy if the business like if the business provide some service to its society like Billboards or Notice Boards that will be usable like putting up Notice from people like Garage sales and many more things or even providing parking and toilets for disable people.

Cultural Diversity

It is very important that Burger Kings know its people (consumers) culture as a whole. This is because people are not offended by any source like advertisement through media that can hurt the people feeling. It (business) will have to show loyalty and respect to its consumers in a polite manner in order to succeed as a business.

Employment Opportunities (Disable)

Providing employment to disable people is a great way to promote the business. This is because they will feel that they are not alone. Helping in workplace and not much workload to them.

Green

Helping the environment is a good way to show responsibilities to the community and towards the people. Like recycling the old oil into the red bin for renewal instead of dumping it on the ground or drain and also separating rubbish which can be recycled like bottles, papers and plastic.

. CULTURAL ISSUES

Community, Organisation, Gender and Religion

Burger King will have to work with its community (helping in a way) to be safe from or to grow with its community. They will also have to accept the different people, ages and culture that will be surrounding the business. This will make sure that they can help/ secure or serve any customers that will consume their products where if it's a female or male or no matter what nationality they are from in showing of respect to themselves and also towards the business.

Food (Halal, Vegetarian or Others)

Burger King has many different types of menu that are available towards the customers to choose from. For example: the burgers sold can either have meat on it like chicken or beefs due to the customers wants or it can also provide vegetarian burgers to those whom does not eat meat like Hindus and even some Muslim that does not consumes bacon and also provide drinks fries and desserts to customers. So selling some Halal food is not a bad idea to attract customers into the business because some people like Halal food. Coming up with many menus for the business to different kinds of people is a good way to promote business sales also to satisfy the customers and to make profit and it will also be a good way to introduce the launching of the new MaCafe.

Support Local Community

Supporting local communities like a game that brings the people together to know each other. Putting boards to people to use or notice to other people on what is happening in the society. Helping in providing disable car parks and also the toilets.

INDUSRIAL ISSUES

New Zealand is one of the countries that people consume or eat a lot from Fast Food restaurants like K.F.C, McDonalds, Dominos, Pizza Hut and Burger King. This is because it is very fast to get the food and sometimes cheap for customers to buy due to some sales in the business or promotion that the business have in a period of time. The Fast Food industry in New Zealand helps a lot in the economic so it is a great opportunity to open or launch a new Cafeteria not only for making profit or for the economy but it also will provide employment. Burger King is not only a local but it s an International Business with franchises making it a great competitors in the market with on the help to other industry like Farming on which the meat, vegetables or other product that can bought to (supplier: Tegel) from that its put into a product and selling it to customers, (it a win-win situation)

SWOT

Strength

Burger King as one of the busiest Fast food restaurants in New Zealand by selling lots of burgers is one of the advantages it has from any other restaurants. It serves as many of its customers just on burgers like patty burger or Mushroom burgers which are not available on any other restaurants. Apart from this , it also has dishes like side dishes like Apple pie, Sunday and others which are most bought by customers. All this, is also due to its location of headquarters and also the location of its 11,500 fast food restaurants in just 70-72 countries all over the world in which it include America, Brazil, Asian countries, Canada and also in New Zealand and many more other countries.

Weakness

One of the weaknesses that Burger King has is the Advertisement it has compare to other fast food restaurants advertisement (competitors) do. One of the main reason is due to some Religion like Muslims people are really not a big or huge fan of Burger King due to the knowledge that they have like they are not really confident to try the Burgers because they are not sure if it Halal or sometimes they get the wrong order in which bacon are presented it which is against the Religion and culture they had. And also the sales are not really that high compared to some fast food restaurants like K.F.C, McDonalds due to lack of Marketing that would be one of the disadvantages they had.

Opportunities

Due to the weakness of advertisement that Burger King has, one of the opportunities that Burger King do is to increase/ improve the sales of producing sales through advertisement in order to increase sales. And also that they can open new Branches in any part of New Zealand like in Cities, towns or somewhere where populations are high and where people are busy at all times like West Auckland. This is because when people are busy like running late to work, they can just order from Burger King or in the morning Breakfast. Also one of the opportunities it also had is that Burger King can launch or develop new products in the business to increase its sales.

Threats

One of the main threats that Burger King faces a lot is its competitors from other fast food restaurants like Wendy's, McDonalds and also K.F.C since these organisation also are known as fast food restaurants that's deals with the selling of Burgers also. If there will be a inflation in the New Zealand economy it can make the sales to decrease due to people not willing to buy from fast food restaurants which will put them on a tough spot due to taxation also while other business can take advantages of this in advertisement on which is one of the weaknesses that Burger King has already. Also one the of the threats that they faces is the changing of customers behaviour to eat/ consume healthier food nowadays.

PESTEL

Political

This includes the laws and regulations from its policies that is usually used in a effective way that will or has to be related to the business. New Zealand as a country that has a lot of fast food restaurants will have its own policy that will be different from some other countries. So Burger King will have to follow this even if it includes the launching of the new cafeteria. This is done to everyone/ business to followed on which is made by its Government. Before launching the new cafeteria to the market Burger King will have to know all these rules and regulations made by the government (KEEP-UP-TO-DATED).

Economic

Burger King as a business will always have a good that will last in a long given period of time (long time goal). So they are also contributing to the Country economy as a fast food industry. One of the main goals that Burger King will have is the increase of sales or to make as much profit as possible. But this will depend on the stability of the country economy as a whole. If it is poor, it can be said that some business will be affected because the amount of tax levied to the. Before launching the new cafeteria Burger King will have a research first to see if it's good or bad depending on the economy.

Social

Burger King is one of the world recommended Fast Food restaurants around the world. So this means that it serves different people and also has different people working on the business across the globe. Burger King will make sure that it has a very good background on it towards the government, tourisms, people or other business and even it community. As in food Burger King will have to take considerations about the culture of different people and also the background they have.

Technology

Technology is one the main advantages that most business used nowadays to run the business in order to make profit. There are always new technology in advance used in a period of time before another technology is made which has a good feature and quality that will replacing the old ones in today's world. Burger King as fast food restaurants will have technology not only to only make work fast, light or easy but also in a way to compete with others in the market but also in another way it can be a disadvantages to other like through employment will not be an increase.

Environmental

A one of a large organisation in the world it will have to take responsibility of its surrounding. This is because they use a lot of materials to make it menus in the business like papers, rollers, packaging. They have to all this so it does not affect the environment and what can be done to prevent it if occurs. For this not only it is helping the environment but also to other business to do the same with their own business so the natural environment of the country can be still conserve.

Legal

Burger King deals with the fast customer service as it a fast food restaurant. But also at the same time it has to make sure that everyone working are safe and also the product are safe and healthy to customers to consume. New Zealand government has a set of departments that requires the legal act of any type of business in the country to follow. So before launching the new cafeteria the business will make sure that has the legal act in the new cafeteria.

Porters Five Forces

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Source: http://www.12manage.com/methods_porter_five_force

Threats for new entrants

When there is a new business entering the market it will be a threat to other business in the market already. There will be more competitors it will have to face in the market so Burger King will also face the same thing. Because it a low barriers of entry which is easy to enter when starting a business in New Zealand.

Threats of Substitute products

Every fast food restaurants will also have a substitute product it the market for its suppliers or buyers. This can be due to the customers taste. So Burger King will to have the ability to change if these does happen or develop of new products in the business to meets it customers' needs

Bargaining of power Suppliers.

The business will make sure that it has a good relationship with its suppliers at all times. The supplies will make sure that it can substitute a product fast if required but it has to be similar to the products. The business will make sure that the suppliers are a large company to it is able to change if required.

Bargaining of power Buyers

It mostly deals with the customers whom have the power on want to purchase in the business according to the needs that they want and not the business. Burger King will make sure that it is able to change to substitute the products if customers has change its habits. They will also make sure that the price is affordable to the buyers to buy or spent their money.

Competitive Rivalry

Burger King is a large business in the fast food industry. It serves lots of customers in a day or at night. So it will face some large competitors in the make like McDonalds in sales. It has a low cost of changing its product in the market if needed and a high customer's loyalty.

CONCLUSION

In conclusion or to sum up. Launching a new cafeteria into the market is a very good move to the contribution to the New Zealand economy and also for the business itself. This is also good for the business to compete with or against its competitors in the market and it can be one of its main strength in the future.

But before launching a new cafeteria, burger King as fast food restaurants will have to do some researches on this. Like the country economy or the rules and regulations that been laid by the government. Or what are some ways that will affect the business and the problem solving.

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